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Credit Rating Scores

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					Credit Rating Scores
Credit rating scores are numbers produced by a mathematical formula
according to the information contained in your credit report. This
information is processed through special software and a score is arrived
at. The score is used by financial institutions for evaluating an
individual's possible ability to pay back a debt.
Credit rating scores vary at different times depending on the changes or
additions in your credit history. Every credit rating score is
accompanied by a maximum of four reason codes. Reason codes indicate the
reason why a consumer did not score high. There are various credit rating
systems. Fair Isaac Credit Rating Score (FICO) is the most widely used
system of credit scoring in the United States.
The scores depend on several factors including payment history, amounts
owed, length of credit history, pattern of credit use, and types of
credit in use. Factors that can damage your credit rating score include
absence of credit references, late payments, and unfavorable credit card
use.
Usually, credit rating score is a three digit number ranging between 375
and 900. The median score in the United States is about 720. Higher
scores mean more financing options and better interest rates. Scores
below certain numbers result in the rejection of credit. When you apply
for a mortgage, home equity loan, car loan, line of credit, or business
loan, the financial institutions first check your credit rating scores
from the credit bureaus.
Credit rating scores significantly affect your ability to get credit.
Borrowers now use the scores as a part of their general financial
promotion strategy. Some insurance companies use your credit rating score
to set your premium rates and some prospective employers use this to
estimate your sense of responsibility.
Credit Rating provides detailed information on Credit Rating, Repair
Credit Ratings, Free Credit Ratings, UK Credit Ratings and more. Credit
Rating is affiliated with Bad Credit Repair.

				
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posted:10/14/2010
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